Minnesota Refinance Loans A Low Interest Rate is Great – But Watch Out for Junk Fees

Getting the best interest rate for your new Minnesota mortgage loan, refinancing loan or home equity mortgage is a top priority.  Most likely, this is the first question that comes to mind when you are considering doing a refinance loan. In reality, loan fees, origination fees and loan turnaround time should also play into your final decision. It is sometimes difficult to know exactly how all of the ‘front end fees’ and ‘back end’ fees will affect your final loan cost. Yes, the interest rate IS important.  Just keep in mind that loads of fees can run that great interest rate right into the ground.  This is why your personal research is crucial. Make sure that you calculate and compare the actual costs for a couple of different loan scenarios.

Ask plenty of questions If you don’t get straight answers to your questions about fees, move along. You could save yourself an enormous amount of cash. (after all, you ARE refinancing in order to save money)

Questions to Ask When You Speak to a Lender

1)  What is the current interest rate for Minnesota?

2)  Is this a fixed rate or adjustable rate?

3)  What is the procedure for locking a rate?  How long will it lock?

4)  What are the origination fees?

5)  How many points will I have to pay in order to get this rate?

6)  What is the loan application fee?

7)  What is the property appraisal fee?

8)  What is the loan turnaround time? (Your loan rate lock might disappear after 30 days)

9) If the rate is a variable or adjustable rate, what is the underlying index? What is the margin?

10) What are the miscellaneous fees? (You need to know ALL of them)

Large lender or Local Bank/Credit Union?

Your local bank or credit union may look like an attractive idea for your next mortgage loan.  However, you may be required to come in and fill out paperwork in person.  Also, you will be applying to one lender, instead of multiple lenders, if you choose this route. This just isn’t an efficient use of your time.  It is also one more credit report that will show on your credit history when you go to the next local lender and apply. Too many of these credit inquiries can temporarily reduce your credit score. It’s called ‘loan shopping’ and lenders don’t like it.

Why Use An Online National Lender?

Online national lenders have access to multiple funding sources.  Basically, they are much like using a mortgage broker. So not only can you fill out an application online right now, day or night, your application will be matched against multiple available programs.  This means ONE pull of your credit report. Online lenders have toll free numbers and extended customer service hours, so you can proceed with your application and loan process when it is convenient for you to do so. (No need to sacrifice your lunch hour to make a loan appointment) You will generally sign all of the paperwork at a local title company.  Or you might be permitted to arrangements for signing the closing documents in front of a notary; use an expedited shipper, such as FedEx, to return the documents and finalize the loan.

Get the best Minnesota Refinancing Loan and Avoid Junk Fees…

Refinance Fees You Need to Avoid Many homeowners think they’ll get the best deal and avoid junk refinance fees by sticking with their bank or credit union. Unfortunately this simply isn’t true…banks and credit unions are exempt from key legislation in the United States.

Internet Mortgage Lenders Rob Regehr’s mortgage video guide will show you how to save thousands of dollars refinancing with the lowest possible mortgage rate. With these mortgage videos you’ll discover how to refinance without paying lender junk fees.

How to Refinance Your Mortgage Without Getting Ripped Off You may have heard on the news recently that mortgage rates are at a 50 year low and now is the perfect time to refinance your home loan. While its true rates are very low right now there a number of junk fees and mortgage broker tricks.

Mortgage Closing Costs You’ve probably heard about junk fees and want to avoid paying unnecessary closing costs when taking out or refinancing your mortgage. Here are the basics you need to know about closing costs to help you avoid paying too much.